May 2 is National Life Insurance Day

Is a benefit a benefit if an employee doesn’t understand it?

Your company’s employer-sponsored life insurance plan is a critical component in a benefits package to help retain valuable employees. But first, your employees need to understand its value.

Life insurance, unlike employee discounts and paid holidays, can be an uncomfortable topic. No one wants to think about death. However, when you ask employees to think through what their loved ones would face in the event of their death, they will realize the value of a life insurance policy. Paying off medical debts, paying off a mortgage, paying tuition–life insurance makes peace of mind possible and may increase loyalty to the company as employees better appreciate this benefit.

Every good employee onboarding checklist includes an explanation of all components of a company’s benefit package. Ensure that your new employees understand the applicable details of your company’s employer-paid life insurance, such as:

Rates are lower through the group policy than individual coverage on the open market.
No medical review is required.
If employees are responsible for a part of the premium, it’s a convenient payroll deduction.
Employees may purchase additional amounts at the company’s lower rates.
The cost of employer-provided group-term life insurance is excluded from the employee’s gross income up to $50,000 of coverage.
Employer-paid life insurance coverage ends when employment ends.

For existing employees, we can help you use annual open enrollment events to review the entire benefit package, especially company-sponsored life insurance. Don’t overlook the impact of informing spouses and families. A take-home sheet from a company picnic, for example, can serve to remind employees and their families of the benefits available to them and increase loyalty.

Let us help you gain the appreciation and understanding of group benefits such as life insurance. The result can be a smarter, happier and more loyal workforce.